The U.S. stock market is beginning to realize a serious decline.
A tumble of more than 170 points on Wednesday was attributed to dismal retail sales data, Europe’s inability to realize an economic recovery and worries on Ebola.
“Ebola is in the background,” said Peter Boockvar, chief market analyst at The Lindsey Group. “It feeds generally into global growth concerns.”
Analysts are attempting to put a good face on the loss, saying a correction is not official until the market drops 10% or more. 20% over a two month period would indicate a bear market.
“My take is that absent a geopolitical shock, we’re experiencing what’s likely to be a painful correction,” the Nasdaq webpage reported today.
“We’re probably going to follow the Europe” markets,” said Peter Cardillo, chief market economist at Rockwell Global Capital.
“The stock market has had a nightmare roller coaster ride during the past 2 weeks,” Nadeem Walayat wrote for Market Oracle prior to the largest dip.
Walayat said the bear market is now officially dead.
“Waves of bearishness have been washing over the mainstream media that predominately at least 80% of the time remains obsessed by BAD news, for FEAR SELLS! be it Islamic State,” he writes, or “China with its Hong Kong crisis. Or what will turn out to be the real threat of 2014 – EBOLA !… So its no wonder that many market participants are running scared.”
Analysts also believe the latest dismal news will force the Federal Reserve to cancel its proposed interest rate hike following months of QE monetary infusion.